Greenbrier Companies (GBX) Gains As Market Dips: What You Should Know
Greenbrier Companies (GBX) closed at $39.34 in the latest trading session, marking a +0.1% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.57%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 1.04%.
Coming into today, shares of the maker of railroad freight car equipment had lost 12.78% in the past month. In that same time, the Transportation sector lost 5.36%, while the S&P 500 gained 0.64%.
Greenbrier Companies will be looking to display strength as it nears its next earnings release. On that day, Greenbrier Companies is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 65%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 8.12% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Greenbrier Companies. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Greenbrier Companies is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Greenbrier Companies currently has a Forward P/E ratio of 11.02. For comparison, its industry has an average Forward P/E of 10.44, which means Greenbrier Companies is trading at a premium to the group.
It is also worth noting that GBX currently has a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Equipment and Leasing was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Transportation - Equipment and Leasing industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
